Trader Update -data point -12 September 2011-

...the SPX 500 2yr/week: a bullish set-up above the June 17 2010 High *1133 - any violation of the key support signals weakness ahead - any Close below key support while price < 200-d MA_plus extreme bearish sentiment  = extreme risk for violent price falls

Market Internals:

VIX Close_< 31 first cautious signal the market ready to continue the bull trend
VIX < 29.3 a strong positve for the market
VIX Close_38.59 12 September 2011- remains in the cautious/danger zone > 31_29.3

C-RSI-30 negative -8.66

Trader Update:

Hedged *1378 Trade: sold the SPX 500 *1202 - Target Range: below *1096 - Stop: *1187

...holding the *1136/*1146 support range, the SPX 500 rallied into the *1168/*1178 resistance - further upside potential into the *1178 short term trendline resistance based on the September 12 Congestion High *1151 holding

...above trendline resistance *1178, upside potential carries the index int overhead resistance current *1235

...failing *1178, the market turns bearish again - in that case, expect the September 6 Low *1136 to fly out the window, pushing the index for a second test of the bull level *1103 at a minimum

Kind Regards